Risk Management in Forex Trading
In trading, the cornerstone of effective risk management involves three crucial steps aimed at sustaining profitability and mitigating potential setbacks. Initially, traders must adeptly identify the diverse risks inherent in the market, encompassing factors such as volatility, credit exposure, liquidity constraints, operational risks, and geopolitical influences. Subsequently, a thorough analysis of these identified risks is […]
What is Spread in Forex Trading
In forex trading, the “spread” refers to the difference between the bid price (the price at which you can sell a currency pair) and the ask price (the price at which you can buy a currency pair). It is essentially the cost of executing a trade in the forex market.
What is a Pip in Forex？
In forex trading, a “pip” stands for “percentage in point” or “price interest point.” It is the smallest unit of price movement in the exchange rate of a currency pair. For most currency pairs, a pip is typically the fourth decimal place of an exchange rate, except for pairs that involve the Japanese yen, where a pip is the second decimal place.
What is traded in Forex?
In the Forex (foreign exchange) market, currencies are traded, the simple saying is ‘MONEY’. More specifically, traders exchange one currency for another with the aim of making a profit based on fluctuations in exchange rates.
How to trade Forex?
The Forex market offers a variety of financial instruments that cater to different trading styles and objectives. Among the financial instruments, the most popular ones are retail forex, spot FX, currency futures, currency options, currency exchange-traded funds (or ETFs), forex CFDs, and forex spread betting. We will focus on Contract of Difference here. Forex CFD […]
What is Forex Trading?
Forex trading, also known as foreign exchange trading or currency trading, involves the buying and selling of currencies on the foreign exchange market with the aim of making a profit. It is one of the largest and most liquid financial markets globally, where currencies from various countries are traded against each other.
